Solved

In the Long Run,an Economy Will Produce Its Potential Output

Question 89

Multiple Choice

In the long run,an economy will produce its potential output if:


A) workers mistakenly believe that nominal wages equal real wages.
B) the expectations of workers and firms are the same in the long and short run.
C) wages and prices are sufficiently flexible.
D) the price level is high.
E) the price level is low.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions